Sometimes, however, there’s not even a peep about the gift tax implications or the gift tax reporting rules for charitable gifts.Or, they tell the donors after it is too late to avoid taxes and penalties.
The short story on the gift tax: • Gifts that qualify for the ,000 annual-per-donee exclusion aren’t reportable, whether made to an individual or a charity.• Outright charitable gifts of cash (including IRA rollovers), regardless of the amount, and property gifts (regardless of the value) qualify for the unlimited gift tax charitable deduction and generally aren’t reportable.• An outright charitable gift of a partial interest (for example, an undivided one-fifth interest in Greenacre) is reportable.That use of funds is not an exception to the penalty for early withdrawal.There are 12 exceptions to the early withdrawal penalty,you can find them all on page 3 of the Instructions for Form 5329, at this link is no exception to the early withdrawal penalty for either a 401k or an IRA for charitable contributions.
You may be thinking of the "qualified charitable distribution" provision that applied to certain IRA withdrawals for people over 70 1/2 years of age, (but NOT to 401k withdrawals), See this IRS topic for an explanation of that provision: So you just enter the actual contributions as normal deductions Charity and Donations go on Schedule A.Enter it under Federal Taxes Tab Deductions and Credits Continue past the IRA Contribution screen (if it comes up)Choose Explore on my own or I'll choose what to work on (if it comes up)Then scroll way down to Charitable Donations Donations to Charity - Click the Start or Update button People come to Turbo Tax Answer Xchange for help and answers—we want to let them know that we're here to listen and share our knowledge.We do that with the style and format of our responses. Chico Marx once gave his check to writer Heywood Broun to pay off a gambling debt, but warned him not to cash it before noon.The following day, Broun called Chico, complaining that the check bounced. ” “You said noon; I got there at twelve-o-two.” “Too late!” Charities and advisors tell donors about the income tax reporting to substantiate charitable gifts—e.g., the “0-and-over” receipt rules, rules for cash gifts under 0, rules for gifts of used clothing, household items and vehicles and qualified appraisal requirements.